If you are an Arvada or Denver resident have you ever wondered how your insurance premiums are actually calculated?
Auto insurance premiums can vary widely and many people simply don’t understand how their auto insurance premiums are actually calculated.
The following blog will hopefully give you some insight into how your auto insurance premiums are calculated and what you can do to save money.
For many insurance companies, your credit score is the most important factor in calculating your auto insurance premium. Insurance companies have found a direct correlation between credit scores and the likelihood of a person filing a claim.
This should come as no surprise that a better driving record will pay less in insurance premiums. Additionally new drivers without any driving history will also pay more in insurance premiums.
This is one of the items we have found that most people don’t realize has a dramatic effect on their insurance premiums. If you put a lot of miles on your car every year, your auto insurance premiums will be higher than others. This is because the more time your vehicle spends on the road, the more likely it is to be involved in an accident.
Where you live and where the car is parked can affect the cost of your insurance. Generally, due to higher rates of vandalism, theft and accidents, urban drivers pay a higher auto insurance price than those in small towns or rural areas.
Insurance companies charge more in premium for less experienced drivers. Generally, if you are below age 25 (and especially if you are 18 years of age or less) then auto insurance will cost you more than other more mature drivers.